Recently, a friend asked me how to determine if a certain cryptocurrency's market trend is genuinely starting to rise. The key point is to look at trading volume. Many people only focus on price increases or decreases but ignore the trading volume behind it, which can easily lead to being fooled by false breakouts.

The meaning of Vol is simply the total amount of tokens traded within a certain period (usually 24 hours). Why is this indicator important? Because it tells you the true level of market activity. High trading volume indicates that there are many buyers and sellers actively trading, meaning high market participation. Conversely, if the trading volume is very low, it suggests the market is quiet, and price fluctuations may be unstable.

My own experience is that when looking at bullish trends, you must also consider trading volume. For example, if a coin's price is rising and the trading volume is also increasing, this is a healthier upward trend, indicating that buying interest is genuinely entering the market. But if the price goes up while the trading volume doesn't follow, you should be cautious, as this kind of rise may not be sustainable. Conversely, if the price starts to pull back but the trading volume is very small, it usually indicates a minor correction rather than a major event.

Just looking at Vol alone isn't enough; I usually combine it with RSI and MACD for analysis. When trading volume increases along with a relatively high RSI value, it generally indicates the market is entering a strong momentum phase. When the MACD signal line and trading volume both increase simultaneously, it often signals that the price is likely to perform strongly. When multiple indicators confirm each other, the judgment becomes more accurate.

In actual trading, I use trading volume to confirm the strength of the trend. If I see a clear upward or downward trend with volume supporting it, I am confident that the trend is real and market-supported. Conversely, if the volume is sluggish, even if the price moves, I remain cautious. Low trading volume makes the market more susceptible to small capital movements, increasing the risk.

In summary, the Vol indicator helps you see clearly how many people are participating in the market. When combined with tools like RSI and MACD, you can better understand whether a trend is genuine or false, strong or weak. This helps you make more rational trading decisions.